Canadian Securities Course (CSC) Level 2 Practice Exam

Cyclical industries tend to be influenced by the expansion or contraction of the USA business cycle because these industries are sensitive to changes in the economy. During an economic expansion, when the business cycle is on an upswing, cyclical industries tend to perform well as consumer demand for goods and services increases. Conversely, during an economic downturn, when the business cycle is contracting, cyclical industries may struggle as consumer spending decreases. This sensitivity to the overall business cycle makes cyclical industries closely tied to economic conditions.